A corporation, society, order, or voluntary association is a fraternal benefit society if it:

1. (1) has a lodge system and a representative form of government or limits its membership to a secret fraternity that has a lodge system and a representative form of government;
2. (2) is organized and operated solely for the mutual benefit of its members and their beneficiaries and not for profit;
3. (3) does not have capital stock; and
4. (4) provides for the payment of benefits in accordance with Section 885.301.

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.